MiCAR

MiCAR: Regulation (EU) 2023/1114

The Markets in Crypto-Assets Regulation (MiCAR), formally known as Regulation (EU) 2023/1114, represents a groundbreaking development in the European Union’s efforts to regulate the rapidly evolving crypto-asset market.

Adopted on 31 May 2023, MiCAR establishes a comprehensive and harmonized legal framework for crypto-assets, issuers, and service providers across all EU Member States. This regulation addresses the urgent need for consumer protection, market integrity, and financial stability in an increasingly digitized financial landscape.

A Unified Approach to Crypto-Asset Regulation

MiCAR replaces fragmented national regulations with a single, directly applicable framework, offering much-needed legal clarity for businesses operating in the EU. By aligning with the EU’s overarching digital finance strategy, MiCAR fosters innovation while safeguarding the interests of consumers and investors.

Key Objectives of MiCAR

Market Stability and Resilience: MiCAR aims to mitigate risks posed by crypto-assets, including financial instability, market abuse, and money laundering.
Consumer Protection: The regulation introduces stringent requirements for crypto-asset issuers and service providers to enhance transparency and safeguard users.
Innovation and Growth: By harmonizing rules, MiCAR reduces regulatory fragmentation, making the EU a more attractive environment for crypto-asset innovation.
Adaptation to Emerging Technologies: MiCAR addresses specific challenges posed by novel technologies, including stablecoins, asset-referenced tokens, and decentralized finance (DeFi).

A Holistic Framework

MiCAR covers all major aspects of crypto-asset regulation, including:

Issuance of Crypto-Assets: Establishing rules for white papers, marketing, and consumer rights.
Supervision and Oversight: Empowering the European Securities and Markets Authority (ESMA) and national competent authorities (NCAs) to oversee compliance and enforce penalties.
Operational Standards: Requiring robust ICT systems, governance frameworks, and risk management practices for crypto-asset service providers.
Significant Tokens and E-Money Tokens: Introducing additional safeguards for stablecoins and e-money tokens to address systemic risks.
Prevention of Market Abuse: Prohibiting insider trading, unlawful disclosure of information, and market manipulation in crypto markets.

A Milestone for Global Crypto Regulation

MiCAR sets a global benchmark for regulating crypto-assets by addressing key risks while supporting innovation. The regulation’s risk-based approach, transparency requirements, and emphasis on operational resilience ensure a balanced framework for market participants.

As the first of its kind, MiCAR provides a clear roadmap for businesses and regulators worldwide, establishing the EU as a leader in crypto-asset regulation.

Let me know if you need further sections or an expansion on any specific aspect!

Recitals – Goals

Purpose and Scope: MiCAR aims to establish a harmonized regulatory framework for crypto-assets across the EU to address market fragmentation, ensure consumer protection, and foster innovation in the digital economy.
Alignment with Global Standards: The regulation aligns with international standards, particularly those of the Financial Stability Board (FSB) and Financial Action Task Force (FATF), to maintain the EU’s global competitiveness.
Risk-Based Regulation: MiCAR adopts a risk-based approach, balancing the need for financial stability and innovation while addressing risks like money laundering, fraud, and systemic vulnerabilities.
Consumer Protection: The recitals emphasize the importance of safeguarding users through transparent disclosures, fair market practices, and robust cybersecurity measures.
Market Integrity: Measures to prevent market abuse, enhance transparency, and ensure fair competition in the crypto-asset ecosystem are prioritized.
Stablecoins and Systemic Risks: Stablecoins, particularly those with widespread adoption, are subject to stricter regulatory oversight due to their potential impact on financial stability and monetary policy.
Innovation and Growth: MiCAR encourages technological advancements and supports innovation hubs, regulatory sandboxes, and public-private collaboration to drive the digital economy.
Crypto-Asset Service Providers (CASPs): CASPs are required to meet robust licensing, governance, and operational standards to enhance market integrity and consumer confidence.
Environmental Sustainability: The regulation integrates environmental considerations, urging crypto-asset issuers and providers to disclose their energy consumption and environmental impact.
DeFi and Emerging Technologies: Decentralized Finance (DeFi) and new crypto-asset models are acknowledged, with MiCAR proposing proportionate measures to address associated risks.
Cross-Border Coordination: Harmonized rules aim to facilitate the cross-border operability of crypto-assets, reduce legal fragmentation, and ensure seamless supervision.
Transparency in Token Offerings: Issuers must provide clear, comprehensive, and standardized disclosures to ensure investors are well-informed about risks.
Beneficial Ownership and AML: The regulation mandates enhanced due diligence, particularly for high-risk transactions, to combat financial crime and ensure transparency in beneficial ownership.
Role of Supervisory Authorities: The European Securities and Markets Authority (ESMA) and national competent authorities (NCAs) are given significant roles in supervision, enforcement, and collaboration.
Periodic Reviews and Adaptability: MiCAR includes provisions for periodic assessments to ensure the framework remains effective and adaptable to technological advancements and market changes.
Education and Public Awareness: The importance of financial literacy and consumer education in the crypto-asset space is underscored to build trust and foster responsible usage.
Global Leadership: MiCAR positions the EU as a leader in crypto-asset regulation, setting a benchmark for other jurisdictions while ensuring compatibility with international frameworks.
Focus on Systemic Resilience: The regulation addresses systemic risks, particularly those posed by widely used crypto-assets and interconnected markets, to safeguard financial stability.
Environmental, Social, and Governance (ESG): ESG considerations are integrated into MiCAR to ensure the crypto-asset ecosystem aligns with the EU’s broader sustainability goals.
Future-Readiness: MiCAR is designed to be agile, enabling updates and adjustments as the market and technology evolve, ensuring the EU’s regulatory framework remains robust and relevant.

Title I – SUBJECT MATTER, SCOPE, AND DEFINITIONS

Article 1 – Subject Matter

Define the regulation’s purpose to establish a harmonized framework for crypto-assets.
Ensure the rules aim to foster innovation while protecting consumers and market integrity.
Highlight integration of crypto-assets in financial systems and address risks.

Article 2 – Scope

Determine the applicability of rules to crypto-asset issuers and service providers.
Exclude crypto-assets classified as financial instruments, deposits, or insurance contracts.
Assess exceptions for specific non-fungible tokens and government-issued digital currencies.

Article 3 – Definitions

Establish precise definitions for terms like „crypto-assets,“ „DLT,“ „issuer,“ „white paper,“ and „crypto-asset services.“
Ensure definitions align with existing EU financial services regulations.

Title II – CRYPTO-ASSETS OTHER THAN ASSET-REFERENCED TOKENS AND E-MONEY TOKENS

Article 4 – Offers to the Public

Require issuers to provide detailed information via a crypto-asset white paper.
Notify competent authorities before making an offer.
Ensure white papers are accessible and published online.

Article 5 – Admission to Trading

Establish criteria for crypto-assets‘ admission to trading platforms.
Define responsibilities of trading platform operators to verify compliance with regulatory requirements.

Article 6 – Content and Form of White Papers

Specify mandatory content: project details, rights and obligations, technical specifications, and risks.
Ensure clarity, completeness, and accuracy.
Require white papers to be presented in a clear and non-misleading format.

Article 7 – Marketing Communications

Regulate marketing materials to ensure consistency with white papers.
Prohibit misleading or deceptive advertisements.
Monitor compliance with transparency and fairness in communication.

Article 8 – Notification of the White Paper

Develop procedures for notifying competent authorities.
Include timelines for review and necessary amendments before publication.

Article 9 – Publication of the White Paper

Ensure issuers publish white papers publicly.
Provide an accessible platform for the public to review white papers.

Article 10 – Result of the Offer

Mandate issuers to disclose results of offers, including the number of crypto-assets sold.
Maintain transparency post-offer.

Article 11 – Rights of Offerors and Issuers

Define legal rights of offerors and issuers during public offerings.
Protect their rights to access necessary resources for compliance.

Article 12 – Modification of White Papers

Outline procedures for updating white papers.
Notify authorities and stakeholders of significant changes.

Article 13 – Right of Withdrawal

Grant retail investors a withdrawal period post-purchase.
Ensure clear communication of withdrawal rights to investors.

Article 14 – Obligations of Issuers

Mandate effective mechanisms for safeguarding funds raised during public offerings.
Specify obligations to monitor and protect investor interests.

Article 15 – Liability for White Papers

Hold issuers liable for inaccuracies or omissions in white papers.
Define remedies and legal recourse for affected investors.

Title III – ASSET-REFERENCED TOKENS

Chapter 1 – Authorisation to Issue Asset-Referenced Tokens

Article 16 – Authorisation

Obtain authorization from the competent authority before issuing asset-referenced tokens.
Ensure the application includes all required documents and information as per regulatory guidelines.
Confirm compliance with initial capital requirements and governance obligations.

Article 17 – Requirements for Issuers

Maintain robust governance arrangements and adequate technical and operational safeguards.
Establish mechanisms for safeguarding reserve assets linked to asset-referenced tokens.
Adhere to risk management protocols and transparency standards.

Article 18 – Application for Authorisation

Submit a formal application for authorization with all supporting documentation.
Ensure the application demonstrates compliance with prudential and operational requirements.
Provide detailed business plans, organizational structures, and key policies.

Article 19 – Content and Form of the Application

Include detailed information on the token issuance, reserve asset management, and governance arrangements.
Submit comprehensive risk assessments and procedures for managing risks tied to the tokens.
Ensure clarity and completeness of all provided documents.

Article 20 – Assessment of the Application

Facilitate the competent authority’s review process by providing timely responses to queries.
Allow sufficient time for regulatory assessment, which includes verifying compliance with all legal requirements.
Cooperate with authorities to address any identified deficiencies.

Article 21 – Grant or Refusal of Authorisation

Await the competent authority’s decision, which will be based on the assessment of compliance with all requirements.
If authorization is granted, begin token issuance in adherence to the approved framework.
If authorization is refused, analyze the grounds for refusal and rectify deficiencies before reapplying.

Article 22 – Reporting on Activities

Establish regular reporting mechanisms to inform authorities about operational and financial activities.
Include details on the reserve assets, token issuance volumes, and any incidents or risks.
Ensure timely and accurate submissions of required reports.

Article 23 – Restrictions on the Issuance

Abide by regulatory limitations on token issuance, including any thresholds or prohibitions.
Notify authorities before making significant changes to issuance activities or token structures.

Article 24 – Withdrawal of the Authorisation

Prepare for potential withdrawal of authorization if regulatory requirements are violated.
Establish contingency plans to address the implications of authorization withdrawal, including investor protection mechanisms.

Article 25 – Modification of Authorisation

Submit formal requests for modifications to the existing authorization when making substantial changes to operations.
Provide supporting documentation to justify modifications and ensure compliance with regulatory standards.

Article 26 – Liability of Issuers

Accept full liability for damages resulting from breaches of regulatory obligations.
Establish robust internal controls to mitigate risks of non-compliance and investor harm.

Chapter 2 – Obligations of Issuers

Article 27 – Obligation to Act Honestly, Fairly, and Professionally

Ensure that all activities are conducted with honesty, fairness, and professionalism.
Protect the interests of holders of asset-referenced tokens and maintain market integrity.

Article 28 – Publication of the White Paper

Publish a white paper outlining the key characteristics, risks, and rights associated with the tokens.
Ensure that the document is clear, accurate, and up-to-date.

Article 29 – Marketing Communications

Ensure marketing materials are consistent with the content of the white paper and are not misleading.
Include appropriate risk disclosures in all promotional activities.

Article 30 – Ongoing Information Obligations

Regularly disclose material updates about the token, reserve assets, or operations that could affect holders.
Ensure all information is accessible, accurate, and timely.

Article 31 – Complaints-Handling Procedure

Implement and maintain a robust procedure for handling complaints from token holders.
Respond to complaints efficiently and transparently.

Article 32 – Identification, Management, and Mitigation of Risks

Identify, manage, and mitigate risks related to the issuance and operation of asset-referenced tokens.
Regularly review risk management practices and adapt them to new developments.

Article 33 – Notification of Material Changes

Notify competent authorities of significant changes in operations, governance, or risk profiles.
Ensure all changes are compliant with regulatory requirements.

Article 34 – Governance Arrangements

Establish sound governance arrangements, including clear accountability and reporting lines.
Ensure governance structures are proportionate to the scale and complexity of operations.

Article 35 – Own Funds Requirements

Maintain sufficient own funds to cover potential liabilities and risks.
Regularly assess capital adequacy and report to authorities.

Chapter 3 – Reserve of Assets

Article 36 – Obligation to Have Reserve Assets

Maintain reserve assets equal to the value of outstanding tokens.
Ensure the reserves are adequately diversified and liquid.

Article 37 – Custody of Reserve Assets

Entrust reserve assets to a qualified custodian with appropriate safeguards.
Regularly verify the existence and security of the reserves.

Article 38 – Investment of the Reserve Assets

Invest reserve assets only in low-risk, liquid instruments to preserve their value.
Monitor investment performance and comply with restrictions.

Article 39 – Right of Redemption

Ensure token holders can redeem tokens at par value at any time.
Provide clear instructions and mechanisms for redemption.

Article 40 – Prohibition of Interest Payments

Refrain from paying interest to token holders on the reserve assets.
Clearly communicate this prohibition in the white paper and terms.

Chapter 4 – Acquisitions of Significant Holdings

Article 41 – Assessment of Acquisitions

Notify competent authorities of any planned acquisitions of significant holdings in the issuer.
Obtain approval for such acquisitions to ensure compliance with regulatory requirements.

Article 42 – Content of the Notification

Provide detailed information about the acquiring party and the purpose of the acquisition.
Include documentation to demonstrate compliance with fit and proper requirements.

Chapter 5 – Significant Asset-Referenced Token Issuers

Article 43 – Classification of Significant Issuers

Determine whether the issuer qualifies as significant based on size, volume, or cross-border activity.
Notify authorities if the significant status is achieved.

Article 44 – Voluntary Designation as Significant

Apply for voluntary designation as a significant issuer if it benefits operations or market position.
Submit supporting documentation and justification for the application.

Article 45 – Specific Additional Obligations for Significant Issuers

Implement enhanced governance, risk management, and transparency measures.
Ensure compliance with additional requirements imposed by regulatory authorities.

Chapter 6 – Recovery and Redemption Plans

Article 46 – Recovery Plan

Develop and maintain a recovery plan to address financial distress or operational failures.
Regularly test and update the recovery plan to ensure its effectiveness.

Article 47 – Redemption Plan

Establish a redemption plan to manage large-scale token redemptions.
Ensure the plan provides clear procedures and sufficient liquidity to meet redemption demands.

Title IV – E-Money Tokens

Chapter 1 – Requirements to be Fulfilled by Issuers

Article 48 – Requirements for E-Money Token Issuers

Ensure e-money tokens are issued only by credit institutions or e-money institutions.
Obtain necessary authorizations before issuance.
Maintain compliance with applicable financial regulations.

Article 49 – Issuance and Redemption of E-Money Tokens

Guarantee that e-money tokens are issued and redeemed at par value.
Allow token holders to redeem their holdings at any time in fiat currency.
Provide clear mechanisms for redemption.

Article 50 – Prohibition of Interest Payments

Avoid offering or paying interest on e-money token holdings.
Clearly communicate the prohibition in all related documentation and marketing materials.

Article 51 – Content and Form of the White Paper

Publish a white paper outlining the characteristics, risks, and rights associated with e-money tokens.
Ensure the white paper is accurate, up-to-date, and compliant with regulatory standards.

Article 52 – Liability of Issuers

Accept liability for losses incurred by token holders due to operational or legal breaches.
Provide clear information on liability coverage in the white paper and terms of service.

Article 53 – Marketing Communications

Ensure all marketing materials align with the content of the white paper.
Avoid misleading statements or omissions that could misinform potential token holders.

Article 54 – Investment of Funds Received in Exchange for E-Money Tokens

Invest funds received from e-money token sales only in low-risk, liquid assets.
Ensure the funds are safeguarded and can support redemption requests promptly.

Article 55 – Recovery and Redemption Plans

Develop a recovery plan to address potential financial or operational crises.
Maintain a redemption plan that ensures the ability to meet token holder demands under stressed conditions.

Chapter 2 – Significant E-Money Token Issuers

Article 56 – Classification of Significant Issuers

Determine whether the issuer meets the criteria for significant status based on market size, volume, or systemic importance.
Notify competent authorities and comply with any additional requirements for significant issuers.

Article 57 – Voluntary Designation as Significant

Apply for voluntary significant issuer designation if operationally or strategically beneficial.
Provide supporting documentation and rationale for the application.

Article 58 – Specific Additional Obligations for Significant Issuers

Implement enhanced governance, risk management, and transparency measures.
Comply with additional requirements imposed by regulatory authorities, including stricter oversight and reporting obligations.

Title V – Authorization and Obligations for Crypto-Asset Service Providers

Chapter 1 – Authorization of Crypto-Asset Service Providers

Article 59 – Authorization

Obtain authorization from the competent authority to provide crypto-asset services.
Ensure compliance with eligibility criteria, including financial soundness, governance, and operational capabilities.

Article 60 – Provision of Services

Clearly define the scope of crypto-asset services to be offered.
Maintain authorization documentation for reference and regulatory review.

Article 61 – Provision of Services Without Authorization

Refrain from offering crypto-asset services without proper authorization.
Notify authorities and cease activities immediately if operating without authorization.

Article 62 – Application for Authorization

Submit a detailed application, including governance frameworks, risk management plans, and operational processes.
Provide all necessary supporting documentation as required by the competent authority.

Article 63 – Assessment of the Application

Respond promptly to requests for additional information during the application review process.
Ensure application materials meet regulatory standards to expedite the authorization process.

Article 64 – Withdrawal of Authorization

Monitor compliance continuously to avoid situations that may lead to authorization withdrawal.
Address any identified deficiencies promptly to retain authorization status.

Article 65 – Cross-Border Operations

Comply with notification and operational requirements when providing services in other Member States.
Ensure adherence to host state regulations for cross-border activities.

Chapter 2 – Obligations for All Crypto-Asset Service Providers

Article 66 – Obligation to Act Honestly, Fairly, and Professionally

Establish policies and practices ensuring fair and professional treatment of clients.
Avoid conflicts of interest and prioritize client interests.

Article 67 – Prudential Safeguards

Maintain adequate financial resources to meet liabilities and operational needs.
Implement mechanisms to monitor and manage financial stability continuously.

Article 68 – Governance Arrangements

Develop robust governance frameworks, including risk management and internal control systems.
Ensure the board of directors and key personnel possess the requisite qualifications and experience.

Article 69 – Information to Clients

Provide clear, accurate, and comprehensive information about services, risks, and costs.
Regularly update clients on significant developments affecting their investments.

Article 70 – Safekeeping of Client Assets

Implement secure custody solutions for client assets to prevent misuse or loss.
Maintain accurate records of client holdings and perform periodic reconciliations.

Article 71 – Complaints-Handling Procedures

Develop and maintain accessible complaints-handling processes.
Respond promptly and transparently to client complaints.

Article 72 – Identification, Prevention, and Management of Conflicts of Interest

Identify potential conflicts of interest and implement measures to mitigate them.
Disclose unavoidable conflicts of interest to clients transparently.

Article 73 – Outsourcing

Ensure all outsourced functions comply with regulatory standards and oversight requirements.
Maintain accountability for outsourced activities and monitor third-party performance.

Article 74 – Orderly Wind-Down of Activities

Develop contingency plans for the orderly cessation of services.
Notify competent authorities and clients in advance of wind-down activities.

Chapter 3 – Obligations in Relation to Specific Services

Article 75 – Providing Custody and Administration of Crypto-Assets

Implement secure custody solutions and administrative processes for managing client crypto-assets.
Regularly review custody arrangements to ensure continued compliance and security.

Article 76 – Operation of a Trading Platform for Crypto-Assets

Establish transparent and secure trading platforms for crypto-assets.
Implement measures to prevent market manipulation and ensure fair trading practices.

Article 77 – Exchange of Crypto-Assets Against Fiat or Other Crypto-Assets

Ensure fair and transparent pricing in exchange operations.
Maintain records of all exchange transactions and comply with AML/CFT requirements.

Article 78 – Execution of Orders on Behalf of Clients

Execute client orders promptly and accurately, ensuring best execution practices.
Provide confirmations and statements to clients for all executed orders.

Article 79 – Placing of Crypto-Assets

Ensure proper due diligence and disclosures when placing crypto-assets on behalf of clients.
Maintain records of placement activities for regulatory review.

Article 80 – Reception and Transmission of Orders

Establish reliable channels for receiving and transmitting client orders.
Maintain records of all client instructions and ensure timely execution.

Article 81 – Providing Advice on Crypto-Assets

Ensure advice is based on thorough analysis and aligned with the client’s interests and risk tolerance.
Clearly communicate the basis and rationale for any advice provided.

Article 82 – Providing Transfer of Crypto-Assets

Implement secure and efficient processes for transferring crypto-assets.
Ensure compliance with AML/CFT and client identification requirements during transfers.

Chapter 4 – Acquisition of Qualifying Holdings in Crypto-Asset Service Providers

Article 83 – Assessment of Qualifying Holdings

Notify competent authorities before acquiring or increasing qualifying holdings in a crypto-asset service provider.
Provide required documentation to facilitate the assessment of the acquisition.

Article 84 – Content of the Notification

Include detailed information on the acquirer’s financial and operational suitability.
Ensure notifications meet all regulatory requirements for content and format.

Chapter 5 – Significant Crypto-Asset Service Providers

Article 85 – Identification of Significant Service Providers

Determine whether the provider meets criteria for significant status based on market share, systemic importance, or operational scale.
Comply with additional obligations imposed on significant service providers, including enhanced governance and reporting.

Title VI – Prevention and Prohibition of Market Abuse

Article 86 – Scope of the Rules on Market Abuse

Ensure adherence to market abuse rules for all crypto-asset activities, including issuance, trading, and dissemination of information.
Identify and implement measures to prevent abuse in line with this regulation.

Article 87 – Inside Information

Define and manage access to inside information to prevent its misuse.
Implement internal protocols for handling, storing, and disseminating sensitive information.

Article 88 – Public Disclosure of Inside Information

Establish mechanisms for the timely and accurate disclosure of inside information to the public.
Maintain records of disclosed information for regulatory review.

Article 89 – Prohibition of Insider Dealing

Prohibit employees and associated parties from engaging in insider dealing.
Monitor and investigate transactions to identify and address potential insider trading.

Article 90 – Prohibition of Unlawful Disclosure of Inside Information

Prevent unauthorized disclosure of inside information by implementing strict confidentiality agreements and procedures.
Train employees on the risks and penalties associated with unlawful disclosures.

Article 91 – Prohibition of Market Manipulation

Monitor and address activities that may constitute market manipulation, such as spreading false information or artificially affecting prices.
Develop and enforce policies to ensure fair market practices.

Article 92 – Prevention and Detection of Market Abuse

Implement systems to detect, prevent, and report market abuse incidents.
Maintain logs and reports of detected abuse for submission to competent authorities.

Title VII – Competent Authorities and Cooperation

Chapter 1 – Powers of Competent Authorities

Article 93 – Competent Authorities

Identify the competent authority responsible for supervising compliance with this regulation.
Maintain regular communication with the designated authority to ensure alignment.

Article 94 – Powers of Competent Authorities

Understand the supervisory powers of authorities, including investigations, inspections, and penalties.
Prepare for and cooperate with audits, inquiries, and reviews conducted by competent authorities.

Article 95 – Cooperation Between Competent Authorities

Establish protocols for cross-border cooperation with competent authorities in other Member States.
Share relevant information to facilitate effective oversight and enforcement.

Article 96 – Cooperation with European Supervisory Authorities

Engage with European supervisory authorities such as ESMA and EBA to ensure compliance with pan-European standards.
Participate in initiatives or consultations led by supervisory authorities.

Article 97 – Promotion of Innovation

Work with competent authorities to support innovation in the crypto-asset space while adhering to regulatory safeguards.
Leverage regulatory sandboxes where available.

Article 98 – Cooperation with Other Public Authorities

Coordinate with non-financial authorities, such as law enforcement and consumer protection agencies, to address broader risks.
Share necessary data while ensuring confidentiality and compliance with data protection rules.

Article 99 – Duty of Notification

Notify authorities promptly of breaches or potential breaches of the regulation.
Maintain records of all notifications for future reference.

Article 100 – Professional Secrecy

Ensure all parties adhere to professional secrecy obligations to protect sensitive information obtained during regulatory activities.
Implement confidentiality policies across all operations.

Article 101 – Data Protection

Align data handling processes with GDPR requirements and this regulation’s specific provisions.
Protect personal and sensitive data involved in crypto-asset activities.

Article 102 – Precautionary Measures by Competent Authorities

Comply with precautionary measures imposed by competent authorities, such as freezing assets or restricting services.
Provide full cooperation during investigations.

Article 103 – ESMA Temporary Intervention Powers

Monitor temporary intervention measures imposed by ESMA, such as prohibiting or restricting certain crypto-asset activities.
Adjust business practices to align with ESMA directives during intervention periods.

Article 104 – EBA Temporary Intervention Powers

Adhere to EBA measures aimed at ensuring the stability of financial markets and consumer protection.
Implement necessary adjustments to address identified risks.

Article 105 – Product Intervention Measures

Respond to product intervention measures imposed by authorities, including halting or modifying offerings.
Monitor regulatory announcements to stay informed of intervention actions.

Article 106 – Coordination with Consumer Protection Authorities

Collaborate with consumer protection authorities to address issues affecting retail clients.
Implement practices that prioritize consumer interests and align with protection standards.

Article 107 – Cooperation with International Authorities

Engage with international regulators and authorities to address cross-border risks and regulatory discrepancies.
Share insights and best practices to contribute to global regulatory harmonization.

Article 108 – Complaints-Handling Procedures

Establish robust procedures for handling complaints from clients and stakeholders.
Address complaints promptly and transparently, and maintain records for compliance purposes.

Chapter 2 – ESMA Register

Article 109 – Register of Crypto-Asset Service Providers

Verify inclusion in the ESMA register if providing crypto-asset services.
Regularly update registration details to ensure accuracy.

Article 110 – Register of White Papers

Confirm that published white papers are included in the ESMA register.
Ensure compliance with notification and publication requirements for white papers.

Chapter 3 – Administrative and Reporting Obligations

Article 111 – Administrative Sanctions and Measures

Be aware of potential administrative sanctions for non-compliance.
Prepare internal procedures to address regulatory breaches promptly.

Article 112 – Exercise of Supervisory Powers

Cooperate fully with supervisory authorities when they exercise their powers.
Maintain records of interactions with regulators.

Article 113 – Right of Appeal

Familiarize your organization with appeal procedures for regulatory decisions.
Ensure legal representation in case of disputes with regulatory actions.

Article 114 – Publication of Decisions

Monitor for published decisions that may affect your organization.
Address any reputational risks from public disclosures of non-compliance.

Article 115 – Reporting of Administrative Measures to ESMA

Report imposed administrative measures to ESMA as required.
Keep records of all submitted reports.

Article 116 – Reporting of Significant Breaches

Report significant breaches of regulatory obligations to ESMA promptly.
Implement monitoring systems to detect and document breaches.

Chapter 4 – Supervisory Arrangements

Article 117 – Supervisory Coordination

Align operations with supervisory coordination measures at national and EU levels.
Participate in supervisory reviews as requested.

Article 118 – EBA Crypto-Asset Supervision

Engage with EBA oversight activities if offering significant crypto-asset services.
Ensure alignment with EBA directives for compliance and reporting.

Article 119 – Colleges for Cross-Border Supervision

Cooperate with supervisory colleges for cross-border activities.
Share requested information with relevant authorities in multi-jurisdictional contexts.

Article 120 – Non-Binding Mediation

Utilize ESMA mediation in disputes between competent authorities.
Prepare documentation to support your organization’s position during mediation.

Chapter 5 – EBA’s Powers and Responsibilities

Article 121 – Legal Privilege

Respect the rights of legal privilege in communications with authorities.
Ensure confidentiality in dealings involving privileged information.

Article 122 – Request for Information

Respond promptly and accurately to information requests from the EBA.
Maintain a log of all submitted information for future reference.

Article 123 – General Investigatory Powers

Cooperate fully with investigatory actions by the EBA.
Prepare for interviews, document requests, and other investigatory measures.

Article 124 – On-Site Inspections

Facilitate on-site inspections conducted by the EBA or designated authorities.
Ensure availability of relevant personnel and documents during inspections.

Article 125 – Exchange of Information

Share requested information with the EBA in a timely manner.
Adhere to confidentiality rules during the exchange of information.

Article 126 – Administrative Proceedings

Participate in administrative proceedings initiated by the EBA.
Provide requested documents and testimony during proceedings.

Article 127 – Disclosure of Breaches

Report breaches of regulatory requirements to the EBA promptly.
Maintain detailed records of identified breaches and remedial actions.

Article 128 – Cooperation with Third Countries

Collaborate with third-country regulators for cross-border activities.
Ensure compliance with international agreements governing crypto-asset services.

Article 129 – Professional Secrecy

Safeguard confidential information obtained during supervisory activities.
Train employees on professional secrecy requirements.

Article 130 – Supervisory Measures

Comply with supervisory measures imposed by the EBA.
Implement corrective actions in response to identified deficiencies.

Article 131 – Fines

Prepare for financial penalties in cases of non-compliance.
Develop a budgetary reserve to address potential fines.

Article 132 – Periodic Penalty Payments

Address recurring non-compliance issues to avoid periodic penalties.
Implement corrective actions promptly to reduce exposure to penalties.

Article 133 – Disclosure, Nature, and Enforcement of Penalties

Monitor public disclosures of penalties and their potential reputational impacts.
Ensure compliance to avoid penalty-related enforcement actions.

Article 134 – Procedural Rules for Sanctions

Understand the procedural rules governing sanctions by the EBA.
Prepare for hearings and other procedural steps during sanction proceedings.

Article 135 – Hearing of the Parties Concerned

Participate in hearings during sanction proceedings.
Present evidence and arguments to contest or mitigate penalties.

Article 136 – Review by the Court of Justice

Appeal unfavorable decisions to the Court of Justice if necessary.
Retain legal counsel for effective representation during judicial reviews.

Article 137 – Supervisory Fees

Pay supervisory fees levied by the EBA as required.
Maintain records of fee payments for auditing purposes.

Article 138 – Delegation of Tasks to Third Parties

Monitor tasks delegated to third parties by the EBA.
Ensure compliance with supervisory actions carried out by third parties.

Title VIII – Delegated Acts

Article 139 – Exercise of Delegated Powers

Monitor the adoption of delegated acts by the European Commission.
Ensure internal compliance procedures align with new delegated acts.

Title IX – Transitional and Final Provisions

Article 140 – Reports on the Implementation of MiCAR

Prepare data and documentation for implementation reports required by the European Commission.
Monitor published reports to evaluate compliance strategies.

Article 141 – ESMA Annual Report

Review ESMA’s annual reports on MiCAR to stay informed about enforcement trends and compliance benchmarks.

Article 142 – Report on Latest Market Trends

Analyze ESMA’s reports on market trends for potential impacts on your organization’s crypto-asset operations.
Adjust policies and strategies in response to emerging risks or opportunities.

Article 143 – Transitional Provisions

Identify transitional provisions applicable to your operations.
Develop a roadmap to transition fully to MiCAR compliance within the specified timelines.

Article 144 – Amendment to Regulation (EU) No 575/2013

Review amendments to Regulation 575/2013 and assess their impact on your risk management and capital requirements.
Update internal compliance frameworks accordingly.

Article 145 – Amendment to Directive 2013/36/EU

Incorporate changes from amendments to Directive 2013/36/EU into governance and prudential frameworks.
Train staff on updated obligations arising from these amendments.

Article 146 – Amendment to Directive 2014/65/EU (MiFID II)

Ensure crypto-asset services align with the amended provisions under MiFID II.
Update procedures for investor protection and market integrity.

Article 147 – Amendment to Regulation (EU) No 600/2014 (MiFIR)

Implement changes affecting the trading of crypto-assets as securities under MiFIR amendments.
Review and adjust reporting and transparency mechanisms.

Article 148 – Transposition of Certain Requirements

Comply with Member State-specific requirements transposed into national law.
Monitor national legislation for nuances in MiCAR implementation.

Article 149 – Entry into Force and Applicability

Confirm the effective dates of MiCAR provisions relevant to your organization.
Ensure full compliance by the stipulated applicability dates.

Concluding Formulas

Acknowledge the formal adoption of MiCAR and its overarching legal implications.

Annexes

Annex I – List of Asset-Referenced Tokens

Verify if any offered tokens fall under the classification in Annex I.
Ensure compliance with obligations for asset-referenced tokens.

Annex II – Minimum Reserve Requirements

Maintain reserve requirements in line with Annex II specifications.
Perform regular audits to ensure reserves meet regulatory standards.

Annex III – Content Requirements for White Papers

Structure white papers to include all elements specified in Annex III.
Review and approve white papers internally before publication.

Annex IV – Significant Crypto-Asset Activities

Evaluate your operations against Annex IV criteria for significant activities.
Implement additional governance or reporting measures if classified as significant.

Annex V – Template for Regulatory Reporting

Use Annex V templates for regulatory reporting submissions.
Ensure reporting accuracy and timeliness to avoid penalties.

proCompliance – Offer from Leitner & Associates

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Comprehensive Review: A thorough evaluation of your crypto-asset strategies, policies, procedures, and compliance frameworks.
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Gap Analysis: Identification of gaps specific to MiCAR requirements, including obligations for asset-referenced tokens, e-money tokens, and other crypto-asset services.
Detailed Findings Report: A concise report highlighting key risks, compliance gaps, and prioritized recommendations.
Actionable Follow-Up Checklist: A clear roadmap to address gaps and ensure ongoing compliance with MiCAR.

For a transparent, all-inclusive price of €9,990 (+19% VAT), proCompliance provides your organization with a robust framework to align with MiCAR requirements efficiently and effectively.

Don’t miss this opportunity to ensure your MiCAR readiness. Contact us today!

proCompliance@leitnerassociates.com